Press Release
Banquo Credit Management licenses the Principia System as its credit portfolio management solution
Jersey City, New Jersey – February 2, 2005 – Principia Partners LLC, a leading technology provider of comprehensive front-to-back office solutions for managing highly complex structured financial assets, liabilities and derivatives, today announced that Banquo Credit Management LLP has launched its first portfolio of fixed income investments underlying the MTNs issued by Diversification Notes ONE plc (DN 1), and is live with the Principia System as its credit portfolio management solution.
The London-based pure credit manager is leveraging the powerful portfolio management capabilities of the Principia System to process investments in DN 1’s portfolio of diversified investment grade bonds and credit instruments. The investment portfolio is funded in the market and immunized against currency and interest rate risk. “Essentially DN 1’s entire balance sheet will be managed on the Principia System,” states Kevin Regan, joint CEO at Banquo Credit Management. The system enables Banquo to model, price, simulate, hedge, stress and capture trading strategies and simulations.
“The software’s exceptionally flexible trade structuring capabilities enhances our ability to manage a conservative capital preservation strategy using just about any type of credit risk instrument,” added Regan. “Banquo utilizes a conservative approach to credit management that is dynamic, continuous and coordinated, focusing on three specific elements: estimation of risk and return for each exposure for selection and sizing; diversification of the portfolio by ‘expected loss’, and active portfolio management.”
After an extensive system search, Banquo selected the Principia System on the basis of its successful experience in satisfying the intense risk management and reporting requirements of Structured Investment Vehicles (SIVs). Banquo’s risk management focuses on a system of operating limits and hard limits based on the matrix monitored by the rating agencies as requisites for their Structured Investment Vehicle (SIV) ratings. “The Principia System allowed us to rapidly bring our special product expertise to the market,” said Peter Luthy, joint CEO at Banquo.
“In Principia, Banquo has selected a market-tested portfolio management platform that will scale with their evolving credit management requirements,” states Dr. Douglas Long, Director of Product Marketing at Principia Partners.
About Banquo Credit Management LLP
Banquo Credit Management LLP is a conservative pure credit
investment manager. Banquo was founded in 2002 by Joint Chief Executives,
Peter Luthy and Kevin Regan, because of the perceived need for
a new approach to credit management. They were joined by fellow
Managing Partners: Mark Boylan, Mark Goodman, and Bill Mendenhall
who acceded after February 2003. The Managing Partners have been
joined by a dynamic team of investment professionals with a wide
range of experience in financial services and the requisite skill
sets to provide added value to Banquo’s diverse client base.
See www.banquocredit.com
About Principia Partners
Principia Partners is the leading software provider for the management and administration of structured finance and credit investment operations. Some of the largest investors in structured credit ABS, MBS and CDOs use Principia SFP as the operational backbone for their portfolios. It enables them to consistently manage, analyze and report on these investments and their associated liabilities and hedges. On a single platform, clients can perform the full range of portfolio management, cashflow and exposure analysis, compliance, risk reporting and accounting activities demanded by their business. Operational inefficiencies associated with using multiple spreadsheets and undedicated systems are reduced by integrating and streamlining these activities on a unified platform that addresses challenges unique to the management of structured finance operations.
Principia SFP’s powerful analytics and ability to interface with, combine and consistently apply deal, cashflow and performance data from the leading industry providers empowers managers to know and understand their investments. On an ongoing basis, users have the control to track, analyze and evaluate risk exposures at the deal, tranche or collateral level and gain a consolidated view of risk across any number of portfolios. The fully auditable operational environment provides the flexibility needed to adapt to changing management, regulatory and accounting mandates and ensure transparency is consistently delivered to investors at every stage of the portfolio lifecycle.
For 15 years, the platform has been used by global commercial banks, insurance companies and investment managers, as well as supporting off-balance sheet operations such as ABCP conduits.
Principia Partners is headquartered in New York, with a European office in the City of London and a technology center in Conshohocken, Pennsylvania.
For press information contact:
Ben Jarrold
Tel: + 44 (0) 20 7618 1370
Email: Jarrold@ppllc.com